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    Om Final Project Walmart

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    new_potter
    Wal-Mart is the world's largest retailer known for its low-cost business model and core competencies in supply chain and IT systems. However, it faces increasing competition and criticism that threatens its brand image. To sustain its advantage, Wal-Mart is investing in green technology and working to build a more sustainable supply chain. It must also adapt its strategy when entering new international markets to account for cultural and market differences.

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    Om Final Project Walmart

    Uploaded by

    new_potter
    138 views12 pages
    Wal-Mart is the world's largest retailer known for its low-cost business model and core competencies in supply chain and IT systems. However, it faces increasing competition and criticism that threatens its brand image. To sustain its advantage, Wal-Mart is investing in green technology and working to build a more sustainable supply chain. It must also adapt its strategy when entering new international markets to account for cultural and market differences.

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    Wal-Mart is the world's largest retailer known for its low-cost business model and core competencies in supply chain and IT systems. However, it faces increasing competition and criticism that threatens its brand image. To sustain its advantage, Wal-Mart is investing in green technology and working to build a more sustainable supply chain. It must also adapt its strategy when entering new international markets to account for cultural and market differences.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    138 views12 pages

    Om Final Project Walmart

    Uploaded by

    new_potter
    Wal-Mart is the world's largest retailer known for its low-cost business model and core competencies in supply chain and IT systems. However, it faces increasing competition and criticism that threatens its brand image. To sustain its advantage, Wal-Mart is investing in green technology and working to build a more sustainable supply chain. It must also adapt its strategy when entering new international markets to account for cultural and market differences.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12
    At a glance
    Powered by AI
    The key takeaways are that Walmart is the world's largest retailer and generates the most annual revenue of any company. Its core competencies are its capabilities to reduce costs across the value chain and its organizational culture focused on low costs.

    Walmart's core competencies are its capabilities to reduce costs across the value chain through efficient procurement, distribution and information technology systems. Its competitive advantages include low prices, a culture focused on low costs, and power over suppliers, labor and customers.

    Walmart is addressing sustainability issues in its supply chain by investing in green technology, process improvements and goals to be fully supplied by renewable energy and create zero waste. It is also promoting sustainable resource use and reducing environmental impacts.

    WAL-MART

    THE WORLD BIGGEST RETAILER


    SUSTAINING CORE COMPETENCE AND COMPETITIVE ADVANTAGE

    Presented by
    Polawat and Mostafa
    K COMPANY REVENUES (in $ millions)

    Exxon Mobile 444,851.0

    Wal-Mart Stores 405,607.0

    Chevron 263,159.0

    ConocoPhillips 230,764.0

    General Electric 183,204.0

    2009 Global Fortune


    RATAIL INDUSTRY STURCTURE
    CORE COMPETENCE & COMPETITIVE ADVANTAGE
    PRIMARY ACTIVITIES SUPPORT ACTIVITIES

    Organizational Culture:
    Low cost business model, Sundown rule, 10 feet
    attitude CORE
    COMPETENCE
    Information Technology System -
    Satellite, Radio Frequency Identification Scanned -Capabilities to
    (RFID), Electronic Data Interchange (EDI) reduce cost
    across the
    value chain
    -
    MARKETING -Organization
    PROCUREMENT AND SALES
    DISTRIBUTION Culture
    -Reduce inventory cost -A few
    w cost promotion
    -Efficient distribution (Cross-Docking)
    osed Relationship with suppliers

     OUTSOURCING FOR LOWER COST:


    • Wal-Mart pressures manufacturers to


    outsourcing jobs

    • More than 70% of Wal-Mart merchandise has a


    Chinese component

    • Wal-Mart is the global leader of outsourcing



    • Wal-Mart is facing stiffer competition everywhere. In
    discounting retailing area, many of its competitors—
    Kmart Sears and JC penny—are being revitalized by
    new management. In warehouse clubs, its Sam’s clubs
    ran a poor second to Costco.
    •
    • Wal-Mart attracts criticism of environmentalists, anti-
    globalization activists, women’s and children’s rights
    advocates, small business representatives and a
    growing number of legislators of varying political hues.
    •
    • How can Wal-Mart sustain its competitive advantage
    and core competence in the US and the world market?
    +
    Profit + + +
    + +
    Marketing Power Marketing Marketing Investment in
    Power over Power over Outsourcing
    Revenue over suppliers
    labor customers
    process
    + improvement

    +
    Sales -
    - - -
    - Unit Cost +
    + Investment in
    +
    Capital Low Price CSR Issue Green
    Technology
    Productivity
    +
    Brand Image -
    Resource
    Depreciation +
    +
    Consumption -
    BRAND IMAGE
    WAL-MART GOING GREEN
    To build a more
    environmentally and
    socially responsible
    global supply chain
    The Operation's
    Strategic Objectives

    -To be supplied by 100% renewable energy


    -To create zero waste Operation
    -To sell products that sustain resources and Strategy
    The Operation's
    environment Competitive Role and
    Operations Position
    Strategy

    Input Output
    Resources Products and Customers
    Design Operation Improvement Services
    Manageme
    nt

    Planning and
    COntrol
    Operation Planning and Controlling
    • 1. Increase fuel efficiency in Wal-Mart’s truck fleet by 25 percent over three years and
     doubling it within 10 years

    • 2. Reduce greenhouse gases by 20 percent in 7 years


    •
    • 3. Reduce energy use at stores by 30 percent in 7 years
    •
    • 4. Cut solid waste from U.S. stores and Sam’s Clubs by 25 percent in three years.
    •
    • 5. Buying diesel-electric and refrigerated trucks with a power unit that could keep cargo cold
    without the engine running, saving nearly $75 million in fuel costs and eliminating an
    estimated 400,000 tons of CO2 pollution in one year alone
    •
    • 6. Making a five-year verbal commitment to buy only organically grown cotton from farmers,
    and to buy alternate crops those farmers need to grow between cotton harvests.
    •
    • 7. Promising by 2011 to only carry seafood certified wild by the Marine Stewardship
    Council, a group dedicated to preventing the depletion of ocean life from overfishing.
    •
    • 8. Buying (and selling) 12 weeks' worth of Restrictions on Hazardous Substances (RoHS)
    -compliant computers from Toshiba
    IN THE WORLD MARKET
    • Wal-Mart’s low price strategy was not successful
    in German and Korean Markets because of :
     -Differences in consumption behavior
     -High cost to invest in IT system
     -Differences in Organization Culture

    • Wal-Mart should use focused-market strategy in


    the world market.


    CONCLUSION
    • In the order to sustain the competitive advantage
    in US Market, Wal-Mart is now focusing on
    creating positive brand image and reputation
    through Green Supply Chain Management.
    •
    • Also, As the US Retail Market is saturated, Wal-
    Mart should enter more international market
    by using focused-strategy.

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